Rupiah ends lower on dollar demand from importers
Rupiah ends lower on dollar demand from importers
Dow Jones, Jakarta
The rupiah ended lower on Monday as dollar demand from local
importers dragged on the local unit, dealers said.
The dollar closed at Rp 9,810, up from its close on Friday at
Rp 9,775.
Dealers said that state banks were the main dollar buyers,
likely mainly on behalf of oil importer Pertamina.
"State banks usually buy dollars on behalf of Pertamina," a
dealer said.
Dealers said that the rupiah failed to benefit from news that
Malaysia's Khazanah will pay around $336 million for a 52 percent
stake in Lippo Bank, and Singapore's UOB will spend US$285
million to boost its stake in Bank Buana to 53 percent from 23
percent.
Still, dealers said that the payment of the transactions could
eventually help the rupiah.
Dealers expect the dollar to trade between Rp 9,790 and Rp
9,840 on Tuesday.
Indonesian shares ended lower on Monday led by selling in
bellwether Telekomunikasi Indonesia (Telkom) as the fresh
weakness of the rupiah and concerns over a suspected bird-flu
outbreak kept overall sentiment weak.
"The market also ran out of fresh leads," said a trader with a
local securities firm.
Bird flu has been suspected in the deaths of three people in
Indonesia, and President Susilo Bambang Yudhoyono promised on
Monday that there would be no "cover up" in the country's battle
against the disease.
Meanwhile, rupiah's weak footing helped dragged down the
Jakarta Stock Exchange's Composite Index which fell 3.20 points,
or 0.3 percent, to 1,128.44.
Decliners led gainers 58 to 54, with 70 stocks unchanged.
Volume was 1.55 billion shares valued at Rp 957 billion, compared
with 2.5 billion shares valued at Rp 1.4 trillion, on Friday.
Telkom fell 1.9 percent to Rp 5,150 after the company on
Friday finished registering shareholders eligible for its Rp 144
a share dividend.
Gas and oil producer Medco Energi lost 8.1 percent to Rp 3,400
on profit-taking and renewed fears that the company would sell a
49 percent stake in a global depositary receipt issue on the
Luxembourg bourse at current prices.
Also lower were Bank Rakyat, which fell 2.5 percent to
Rp 2,950, and Bank Mandiri, which dropped 0.7 percent to
Rp 1,490, on lingering concerns over high interest rates which
could hurt the banks' net interest margins.
Automotive company Astra International bucked the trend,
rising 0.8 percent to Rp 12,300 on a rebound after sharp falls
last week.
Dealers said they expect Indonesian shares to trade slightly
higher on Tuesday on a rebound in telecommunication blue chips.